CBSE 2023 Class 12 Economics Delhi Set 1

Question : 8

Total: 49

If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be _______.
(Fill up the blank with correct alternative)

equal to unity
less than one
greater than one
equal to zero

Solution:

(d) equal to zero
Explanation:
Increase in National Income = Increase in Saving
Or ∆Y=∆S
We Know that ∆Y=∆C+∆S
‌∆Y−∆S=∆C
‌∆Y−∆Y=∆C
(Because here, ∆Y=∆C )
0=∆C
Now, MPC=‌

∆C

∆Y

=‌

∆Y

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